EUROPEAN DYNAMICS welcomes a Strategic Minority Investment from CAPZA and Abry Partners

EUROPEAN DYNAMICS (“ED” or “the Company”), a global, market leading provider of eGovernment software and digital transformation services to Governments and International Institutions, announced today a minority investment led by CAPZA (investing through its flagship Flex Equity Mid-Market 2 fund) and joined by Abry Partners (“Abry”, investing through its Senior Equity Fund, ASE VI, LP) (together “the Investors”).

The Investors will support ED’s growth strategy together with its founder and Chief Executive Officer, Constantinos Velentzas, who retains a significant majority of the Company’s share capital. This investment marks the Company’s first partnership with financial investors since its inception.

CAPZA¹, who will be the lead investor in the transaction, is an established private investment platform across private debt and private equity in Europe with more than €9.1 billion of assets under management (AuM)². CAPZA is part of AXA Investment Managers Alts (“AXA IM Alts”), a global leader in alternative investments with over €186 billion of AuM.³ Through its Flex Equity Mid-Market 2 fund, CAPZA invests tickets of up to €150 million in European and global leaders with strong growth potential.

Abry is a leading sector-focused North American private equity firm which invests across the capital structure managing $17 billion of assets across several investment strategies.

Founded in 1994, the Company has become a leading eGovernment and digital transformation partner for the public sector, recognised for its deep expertise and ability to leverage technology and data to drive innovation. ED has also developed and commercialises a suite of market leading software products specifically tailored to core eGovernment activities (notably in the fields of customs, taxation, procurement, financial markets and IP management).

With a staff of c. 1,200 across 7 main international operating subsidiaries, the Company works with c. 100 clients globally including Federal Governments, European Institutions & International Organisations in more than 30 countries and 4 continents. ED has established a multidisciplinary Technology Centre in Greece, and prepares its expansion in France, the Nordics, DACH and the USA. In this context ED is intensifying its recruitment plan, aiming at hiring 800 technology experts over the next few years (more than 50% of these new posts will be based in Greece). In addition, the Company negotiates partnerships with universities and academic centers in Europe and in the USA.

The Company has experienced significant organic growth, notably driven by the growing needs of institutions and government bodies’ IT solutions to enhance operational efficiency and ensure compliance with regulatory constraints. The partnership with the Investors will accelerate ED’s expansion within and outside Europe, while it will also support through the necessary investment, innovative product development and strategic M&A.

Completion of the transaction is expected by summer 2025 and is subject to customary closing conditions and approvals.

Constantinos Velentzas, Founder and Chief Executive Officer, EUROPEAN DYNAMICS, said: “We are thrilled that CAPZA and Abry are investing in ED as minority partners, which proves the embedded value of our Company. This partnership reflects a shared conviction in our strategic model as well as the common ambition of a leadership position in the critical and ever-evolving landscape of the eGovernment sector. Today’s announcement is also a testament to the hard work of everyone at ED, our three decades of organic growth and the opportunity that lies ahead. With the Investors, we can grow our organic offerings, accelerate our international expansion plans and further develop our ability to innovate, bringing our services and products to more clients around the world.”

Jess Wizman, Partner Flex Equity Mid-Market at CAPZA, said: “We are proud to partner with EUROPEAN DYNAMICS, a market leader in digital transformation for Governments, European and International Institutions. CAPZA has a strong track-record in supporting high-growth software and IT services companies, and we were particularly impressed by ED’s deep domain expertise, mission-critical solutions, and international reach. We are excited to support Constantinos Velentzas and the management team in ED’s next growth chapter, notably in key markets like France and in strategic sectors including Defense.”

Tyler Wick, Co-Head of Abry Senior Equity Fund at Abry Partners, said: “Constantinos and the ED management team have built a world-class software and digital transformation platform dedicated to providing complex and mission critical solutions to the public sector. We have extensive experience partnering with government technology companies in North America and Europe and we believe that EUROPEAN DYNAMICS is well positioned to expand its global leadership position. Abry is thrilled to partner with the Company and support the management team in this next phase of growth, including expansion into North America and into rapidly growing categories such as artificial intelligence.”

Deal Participants

Company
Financial Advisor: Houlihan Lokey
Lawyers: Ashurst LLP and Lambadarios Law Firm
Vendor Due Diligence (Financial, Tax, and Commercial): PwC

CAPZA
Deal team: Jess Wizman, Antoine Forgeard, Roxane des Jamonières, Mathieu Moreau
Lawyers: Paul Hastings
M&A: Bryan Garnier & Co
Due Diligence

• Strategic: PMP
• Financial: Alvarez & Marsal
• Legal, Tax and Social: Grant Thornton
• Tech, ESG: Eleven

Abry Partners
Deal team: Tyler Wick, Rashard Green, Zaid Khanbozai, Ryan McCarthy
Lawyers: Kirkland & Ellis LLP
M&A: William Blair
Due Diligence

• Strategic: Loenberg Consulting
• Financial: Alvarez & Marsal
• Tax: Ernst & Young

About CAPZA

Created in 2004, CAPZA is an established European private investment platform.

With more than €9.1 billion of assets, CAPZA puts its experience and passion for investing at the service of investors worldwide with its platform of 6 complementary investment strategies: Flex Equity, Flex Equity Mid-Market, Growth Tech, Transition⁴, Private Debt, and Artemid⁵.

CAPZA offers financing solutions to companies at every stage of their development. Its unique platform allows CAPZA to support companies over the long term by providing them with custom-made financing solutions (majority equity, minority equity, subordinated debt, senior debt, etc.). CAPZA is a generalist but has built up strong expertise in supporting companies in the health, technology and services sectors.

CAPZA Group has more than 115 employees based in Paris, Munich, Madrid, Milan and Amsterdam, and is part of AXA IM Alts, one of the global leaders in alternative investments with €186 billion in assets under management.

More information about CAPZA: https://capza.co

About Abry Partners

Abry Partners is one of the most experienced and successful sector-focused private equity investment firms in North America. Since its founding in 1989, the firm has completed over $90 billion of leveraged transactions and other private equity or preferred equity placements. Currently, the firm manages $17 billion of assets across several fund strategies.

More information about Abry Partners: www.abry.com

Disclaimer

This document is aimed solely at the media and is for information purposes only. The opinions expressed here are the views of the author and do not constitute investment advice. This is not a recommendation to purchase, sell or subscribe to financial instruments, an offer to sell investment funds or an offer of financial services. This press release is as dated. They do not necessarily represent the views of any company within the AXA Investment Managers Group and may be subject to change without notice. This does not constitute a Financial Promotion. This is for information purposes only. No financial decisions should be made on the basis of the information provided. Past performance is not necessarily representative of future results: performance is not constant over time and the value of investments may fall as well as rise.

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1 Atalante (commercial name CAPZA)

2 Including assets managed by a third party and advised by Artemid SAS. Based on valuations as of 31/12/2024.

3 Source: AXA IM Alts data (unaudited) as at 31 December 2024.

4 The funds of the CAPZA Transition range are managed by the asset management company CAPZA, and advised by CAPZA Transition SAS which has financial investment advisor status (CIF in France), is registered under the Orias under the number 18001601 since the 03/23/2018.

5 The funds of the Artemid range are managed by the asset management company CAPZA and advised by Artemid SAS, which is a subsidiary of CAPZA and has financial investment advisor status (CIF in France). Artemid SAS is registered by the Orias under the number 14003497 since the 05/28/2014.

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